Illustrations of accounting policies-financial statement, Financial Accounting

Illustrations of Accounting Policies

A Ltd., has decided to change its policy of writing off borrowing costs to capitalizing the same. As at 31st December, 2003, the company had written off borrowing costs amounting to £200,000. During the year ended 31/12/04.  The company reported profit for the period of £450,000 but after charging borrowing costs of £50,000.  As at 31/12/03 the retained profits were £1,500,000. Other transactions were:-

•    Transfer from revaluation reserve on sale of PPE - £40,000
•    Transfer from retained profits to general reserve - £50,000
•    Interim dividends paid - £200,000

Required: 
Prepare the statement of changes in equity extract for the year-ended 81/12/04

 

Retained profits

 

£

Balance as at 1.1.2004

1,500,000

Change in accounting policy

  200,000

Balance as restated

1,700,000

Transfer from revaluation reserve on sale of PPE

40,000

Profit for the period (450,000 + 50,000)

500,00

Transfer to general reserve

(50,000)

Interim dividends paid

(200,000)

Balance as at 31/12/2004

1,990,000

Posted Date: 12/12/2012 12:51:25 AM | Location : United States







Related Discussions:- Illustrations of accounting policies-financial statement, Assignment Help, Ask Question on Illustrations of accounting policies-financial statement, Get Answer, Expert's Help, Illustrations of accounting policies-financial statement Discussions

Write discussion on Illustrations of accounting policies-financial statement
Your posts are moderated
Related Questions
1. When preparing the operating activities section of the statement of cash flows using the indirect method, a decrease in accounts recievable is subtracted from net income. True o

On June 30, 2011, Omara Co. had outstanding 8%, $3,000,000 face amount, 15-year bonds maturing on June 30, 2021. Interest is payable on June 30 and December 31. The unamortized bal

You were recently hired by E&T Boats, Inc. to assist the company with its financial planning and to evaluate the company's performance.  E&T Boats, Inc. builds and sells boats to o

Bankrupt person A bankrupt is a person against whom an adjudication order has been made by the court primarily on the grounds of his insolvency. Any person (other than a body c

The chairman's declaration claims that RZP Co has delivered growth in every year in dividends earnings and ordinary share price apart from 2002. Analysis demonstrates that the chai

Let us assume you expect to obtain Rs.2000 yearly for the next three years. The receipt of Rs.2000 is evenly divided. One part that is: Rs.1000 is obtained at the beginning of the

Uniform Capitalization Rules- These are a set of rules intended to be a single comprehensive set of rules to govern capitalization, or inclusion in INVENTORY of indirect and direc

Q. Report to stockholders of a company? Annual Report - Report to stockholders of a company that includes company's annual,audited BALANCE SHEET and related statements of earni

The Red and Blue partnership has been created to operate a law firm. The partners have been attempting to devise a fair system to allocate profits and losses. Red plans to work mor

Ask question #Minimum 10010 qestions words accepted#